Consignments in SAP SD – SAP Training ( Feb 2011 Batch )

Summary : We have discussed the important of consignments and when exactly they are used. We have also discussed how exactly the accounting process works ( From a goods movement perspective ) and the unique aspects of consignments that make it different from regular sales.

Questions : Based on today’s SAP SD Training class, please work on the following exercises.

Q. 1 – Describe in your own words how a consignment fill-up is different from a regular order ? ( Try to think of the following aspects – Accounting, Goods Ownership , Special stock vs unrestricted stock, Customer Premises vs the company’s plant location etc )

Q.2 – Describe in your own words how a consignment issue is different from a regular sales order ?

Q.3 – Describe in your own words, how a consignment issue is different from a consignment fill-up ?

Q.4 – Why does the SAP Document # 35000000 in our SAP system not have an invoice ?

Q.5 – What is the movement type associated with the corresponding delivery for the Document number specified in Q.4 ?

Q.6 – Why is it that material Account Documents are not created for the PGI of the SAP delivery document # 80009740 ?

Q.7 – What is the total value of the SAP Order # 35000000 and why ?

Q.8 – Which field controls the pricing of SAP Line Item No. 10 in the SAP Sales Order Number in Q.7 ?

Q.9 – What kind of document is SAP Sales Order # 9103 ?

Q.10 – Why is the Picking Quantity zero in SAP Delivery # 80012651 ?

Q.11 – What are the different (COGS and Inventory Account) G/L Accounts corresponding to the Accounting document in SAP Delivery # 80012651 ?

COGS A/c – ?

Inventory A/c – ?

Q.12 – The deliveries related to only one of the following SAP sales documents need picking. Which one and why ?

Consignment Fill-up

Consignment Issue

Q.13 – Are physical goods in an SAP consignments Fill-up document type relevant for Availability check ? Give the procedure on how you found out the answer.

Scenario : Based on the Iron Ore scenario that we discussed today in the class, please create the following. Assuming iron ore is material M-01 and PC is the units ( in tons for example ), explain which document is necessary in each of the cases.

1) A) Consignment fill-up (CF is the sales document used) is not billed for all the quantity sent to customer where as the standard order does.
B) Goods issued (consumed) (CI is the sales document) by the customer are billed.
C) The goods returned (CONR is the sales document used) due to poor quality or damaged are billed.
D) Goods pick-up (CP is the sales document) are not billed.
2) Consignment issue is the amount of the product consumed by the customer from the quantity sent to the customer this is only billed for the consumed quantity, regular sales order is the amount needed for consumption this billed for the whole quantity.
3) Consignment fill-up is the total quantity sent to customer but not billed for all the quantity. Consignment issue is the amount of the product consumed by the customer from the quantity sent to the customer this is only billed for the consumed quantity.
4) Because it’s consignment Fill-up
5) Movement type 631
6)
7)0.00 usd, because its consignment Fill-up
8-sales document type CF
9) Sales Order 9103 is Consignment Issue
10) the total goods are consumed
11) COGS a/c- fully invoiced
Inventory a/c- 0
12) Consignment Fill-up because this is left over after the consignment issue.
14)16024 consignment fill up —- 80015976
15)16025 consignment issue——80015977
16) 60000096 consignment returns—-84000035
17) 60000097 consignment pickup——84000036
***18) consignment pickup does we need to enter the amount we are picking up
19) 1. Unrestricted Use.: 1.051.815,000
2. Customer Consignment: 100,000
20) delivery for the orders
16024 consignment fill up —- 80015976
16025 consignment issue——80015977
60000096 consignment returns—-84000035
60000097 consignment pickup——84000036
21) Customer consignment 100,000

2)
In the consignment issue goods is delivered from “Special Stock” where as in regular sales goods will be delivered from Plant.

3)
We cannot bill the customer in the consignment issue but we can bill the customer in consignment fill-up. Total goods of the company will be reduced after consignment fill-up but not in consignment issue.

4)
Item Category we used in this document is not relevant for pricing

5)
Movement Type-631.

6)
Because of the movement type 631

7)
Total document value is Zero because Material is not relevant for pricing

Q.2 – Describe in your own words how a consignment issue is different from a regular sales order?
Answer: Goods are on customer’s premises and are readily available. In a regular sales order customer might have to wait for the supplies to show up. The billing takes place as regular billing.

Q.4 – Why does the SAP Document# 35000000 in our SAP system not have an invoice?
Answer: Document# 35000000 is a consignment fill-up. It is a transfer of stock within the company, so no invoice. As there is movement of goods, there is a delivery document for this document.

Q.5 – What is the movement type associated with the corresponding delivery for the Document number specified in Q.4?
Answer: 631

Q.6 – Why is it that material Account Documents are not created for the PGI of the SAP delivery document # 80009740?
Answer: As this is a consignment fill-up order, material is still on the Company’s account, hence no material accounts document required.

Q.7 – What is the total value of the SAP Order # 35000000 and why ?
Answer: 0.00 as this is a consignment fill-up, the stock is still with the company, so no invoice and the value is 0.00

Q.8 – Which field controls the pricing of SAP Line Item No. 10 in the SAP Sales Order Number in Q.7 ?
Answer: Schedule line category type – KBN

Q.9 – What kind of document is SAP Sales Order # 9103 ?
Answer: Consignment Issue (determined from item Category type KEN – tracked it back to the type using VOV7)

Q.10 – Why is the Picking Quantity zero in SAP Delivery # 80012651?
Answer: As this delivery belongs to a consignment issue order type, the material is already at the customer site so no picking required.

Q.12 – The deliveries related to only one of the following SAP sales documents need picking. Which one and why?
Consignment Fill-up – Pick-up needed
Consignment Issue – Pick-up not needed

Q.13 – Are physical goods in an SAP consignments Fill-up document type relevant for Availability check? Give the procedure on how you found out the answer.
Scenario : Based on the Iron Ore scenario that we discussed today in the class, please create the following. Assuming iron ore is material M-01 and PC is the units (in tons for example), explain which document is necessary in each of the cases.
Answer: No. For the CF order type, Availability Check for the Business transaction is left ‘blank’.

Q.19. – Write down the stock situation (Here is how you can check the stock overview in SAP) in the plant where you have created the SAP sales document types in Q. 18 above?
1. Unrestricted Use.
2. Customer Consignment.
Answer: SIVA – how do we check this?

a. Accounting- consignment fill-up will have a consignment fillup order and a consignment fillup delivery

b. Goods Ownership— In consignment fillup, there are no invoices since there is no change of ownership for the materials

c. Special stock vs unrestricted stock- In consignment fill-up, goods issue of the appropriate stock is posted from the unrestricted-use stock to consignment stock (special stock). The goods remain in the possession of the vendor.

When we ship consignment stock to the customer, we record the transaction by creating a consignment fill-up order. As a result, the system carries out the following actions:

a. If special stock does not yet exist in my inventory for the customer (or special stock partner), the system creates it when goods issue is posted
b. The relevant quantity is removed from regular inventory in my plant and is added to the special stock for the customer. The total valuated stock for the plant remains the same.
c. The transaction is not relevant for pricing since the consignment stock remains the property of your company.

Answer-2

consignment issue is different from a regular sales order—

consignment issue

issue materials from customer consignment to the customer.
It consists of consignment issue order, consignment issue delivery and a consignment issue invoice.

Order type is CI

Item Category KEN.

Sechdule Line C0 or C1(The difference is whether the stock should be reserved).

regular sales order

Order type is OR

Item Category TAN.

Sechdule Line CP

The main difference is that, in Consignment issue, the materials are issued from the consignment stock instead of plant stock unrestricted.

Q. 1 – Describe in your own words how a consignment fill-up is different from a regular order ? ( Try to think of the following aspects – Accounting, Goods Ownership , Special stock vs unrestricted stock, Customer Premises vs the company’s plant location etc )

ANS 1: A consignment fill up is different from a sales order in a sense that a consignment is not a sale…….cosignment fill up is a a process in wihich we fill up a customer’s warehouse with a certain number of parts or material from which whatever number the customer wants can draw on the daily basis.Until the customer draw a certain number…the material is still the property of the vendor and when the customer draw a certain number.. then it becomes a sale.So, consignment is a special stock which is manufactured to facilitate a bulk buying customer. Its a “B to B” scenerio.
A>>Consignment fill-up (CF) is the sales document used and is not billed for all the quantity sent to customer’s warehouse, where as the standard order is billed.

B>> Consignment issued (CI).Customer is billed.

C>> The goods returned (CONR) due to poor quality or damaged are billed.

D>> Goods pick-up (CP) are not billed.

Q.2 – Describe in your own words how a consignment issue is different from a regular sales order ?

ANS 2: A Consignment Issue is differenet from Sales Order in a number of ways;

1- Consignment Issue is drawing goods from customers own warehouse which have been made available for him. There is no need to check availability for the stock since it is already available.

SALES ORDER you have to place the order,check availability and all that….

Q.3 – Describe in your own words, how a consignment issue is different from a consignment fill-up ?

ANS: Consignment fillup is a process in which a customers Warehouse is filled up with certain goods and drawing out a certain number from this warehouse is called consignment issue.

Q.4 – Why does the SAP Document # 35000000 in our SAP system not have an invoice ?

ANS: It is an Consignment fill up not a sales order and still is the vendors property.

Q.5 – What is the movement type associated with the corresponding delivery for the Document number specified in Q.4 ?

ANS: 631

Q.6 – Why is it that material Account Documents are not created for the PGI of the SAP delivery document # 80009740 ?

ANS: Because its a consignment fill up.

Q.7 – What is the total value of the SAP Order # 35000000 and why ?

ANS: 00.00 This is because the goods are not sold yet.

Q.8 – Which field controls the pricing of SAP Line Item No. 10 in the SAP Sales Order Number in Q.7 ?

ANS: Its the Item Category

Q.9 – What kind of document is SAP Sales Order # 9103 ?

ANS: CI

Q.10 – Why is the Picking Quantity zero in SAP Delivery # 80012651 ?

ANS: The Goods are already at the customers premises so no picking is required.

Q.11 – What are the different (COGS and Inventory Account) G/L Accounts corresponding to the Accounting document in SAP Delivery # 80012651 ?

COGS A/c – 490002986

Inventory A/c – 0090033795

Q.12 – The deliveries related to only one of the following SAP sales documents need picking. Which one and why ?

1- Consignment Fill-up.

This needs picking because u need a certain amount of the product to put in the customers warehouse and for that you have to do the picking.

2- Consignment Issue.

This does not need picking because the goods r already at the customers warehouse.

Q.13 – Are physical goods in an SAP consignments Fill-up document type relevant for Availability check ? Give the procedure on how you found out the answer.
Scenario : Based on the Iron Ore scenario that we discussed today in the class, please create the following. Assuming iron ore is material M-01 and PC is the units ( in tons for example ), explain which document is necessary in each of the cases.

ANS: No availability check will be performed because its not a sales order.

Q. 1 – Describe in your own words how a consignment fill-up is different from a regular order ? ( Try to think of the following aspects – Accounting, Goods Ownership , Special

stock vs unrestricted stock, Customer Premises vs the company’s plant location etc )
Answer: Consignment fill-up is different from regular order as it has delivery, but no billing related to it. In Consignment fillup, since no billing is involved, there is no

accounting updates. Even though delivery happens, the goods ownership is still with the company, the special stock inventory goes up in consignment fillup even though delivery

is made to the customer stock location. All these are different from regular order.

Q.2 – Describe in your own words how a consignment issue is different from a regular sales order ?
Answer: Consignment Issue has delivery and billing related to it. The delivery happens from the special stock inventory to customer, during which the cost of goods accounts

value goes up. The availbility check is performed against special stock instead of regular stock. All these are different from regulater order.

Q.3 – Describe in your own words, how a consignment issue is different from a consignment fill-up ?
Answer: Consignment issue is when the actual sale to the customer happens, when customer consumes the goods delivered from the special stock. In consignment fillup, no sale is

recorded, as its just a transfer of goods from company location to customer consignment location.

Q.4 – Why does the SAP Document # 35000000 in our SAP system not have an invoice ?
Answer: Because its a Consignment fillup doc.

Q.5 – What is the movement type associated with the corresponding delivery for the Document number specified in Q.4 ?
Answer: Delivery Doc has 631 for movement type

Q.6 – Why is it that material Account Documents are not created for the PGI of the SAP delivery document # 80009740 ?
Answer: Consignment fillup delivery still leaves ownership with company, not customer, so no billing related account document gets created.

Q.7 – What is the total value of the SAP Order # 35000000 and why ?
Answer: Net value is 0, as the ownership of goods hasn’t changed.

Q.8 – Which field controls the pricing of SAP Line Item No. 10 in the SAP Sales Order Number in Q.7 ?
Answer: Item category KBN of line item

Q.10 – Why is the Picking Quantity zero in SAP Delivery # 80012651 ?
Answer: Because its a delivery related to consignment issue, which is not relevant for picking.

Q.11 – What are the different (COGS and Inventory Account) G/L Accounts corresponding to the Accounting document in SAP Delivery # 80012651 ?
Answer:
COGS A/c – ? <— how to check

Inventory A/c – ? <— how to check

Q.12 – The deliveries related to only one of the following SAP sales documents need picking. Which one and why ?
Answer:
Consignment Fill-up : Picking needed

Consignment Issue : No picking needed

Q.13 – Are physical goods in an SAP consignments Fill-up document type relevant for Availability check ? Give the procedure on how you found out the answer.
Answer: Fillup doc have line items with item category KBN which has 'schedule lines allowed' checked, which means availability check can be preformed.

Scenario : Based on the Iron Ore scenario that we discussed today in the class, please create the following. Assuming iron ore is material M-01 and PC is the units ( in tons for

Q.19. – Write down the stock situation (Here is how you can check the stock overview in SAP) in the plant where you have created the SAP sales document types in Q. 18 above ?
Answer: Trans code MMBE
1. Unrestricted Use. – 7.959,000

Hi Siva , please check the answer 18 to 21 . i am not sure about the answers.
i can’t deliver CI and CP orders. it came up the error message: ‘ no schdule line due for delivery’

Q. 1 – Describe in your own words how a consignment fill-up is different from a regular order ? ( Try to think of the following aspects – Accounting, Goods Ownership , Special stock vs unrestricted stock, Customer Premises vs the company’s plant location etc )

CF is having a delivery but no billing related to it > as there is no delivery so account update is not required. Even though delivery of material is done at customer premises still the company has a ownership of the material.In CF special stock inventory goes up.

Q.2 – Describe in your own words how a consignment issue is different from a regular sales order ?

CI has a delivery and billing related to it. here the ownership of the goods is also transferred . as delivery happened special stock inventory goes down while COGS goes up

Q.3 – Describe in your own words, how a consignment issue is different from a consignment fill-up ?
In CI , actual sales process occurs. CF only transfer of stock happen from business to customer’s plant or storage location

Q.4 – Why does the SAP Document # 35000000 in our SAP system not have an invoice ?

its a consignment fill up document .

Q.5 – What is the movement type associated with the corresponding delivery for the Document number specified in Q.4 ?

631: goods consignment lending

Q.6 – Why is it that material Account Documents are not created for the PGI of the SAP delivery document # 80009740 ?

Its not billing or pricing relevant so………………..

Q.7 – What is the total value of the SAP Order # 35000000 and why ?

0.00
because its a transfer of material to plant or customers location. there is no sales involved here.

Q.8 – Which field controls the pricing of SAP Line Item No. 10 in the SAP Sales Order Number in Q.7 ?
KBN of line item

Q.9 – What kind of document is SAP Sales Order # 9103 ?

Consignment Issue

Q.10 – Why is the Picking Quantity zero in SAP Delivery # 80012651 ?

material is already at the customers site so don’t need to pick again

Q.11 – What are the different (COGS and Inventory Account) G/L Accounts corresponding to the Accounting document in SAP Delivery # 80012651 ?

COGS A/c – 893015

Inventory A/c – 792000

Q.12 – The deliveries related to only one of the following SAP sales documents need picking. Which one and why ?

Consignment Fill-up: yes because business need to deliver specific no of material to customer site so picking is needed.

Consignment Issue: no. material is already at customers site so don’t need a picking

Q.13 – Are physical goods in an SAP consignments Fill-up document type relevant for Availability check ? Give the procedure on how you found out the answer.

Scenario : Based on the Iron Ore scenario that we discussed today in the class, please create the following. Assuming iron ore is material M-01 and PC is the units ( in tons for example ), explain which document is necessary in each of the cases.

yes. KBN is having a schedule line category E1.E1 schedule line category is to be used with MRP . it uses availibility check(VoV6)

Q.1 ) Regular order is relevant for pricing, billing relevant also include customer credit limit. ( The inventory will go down , cost of goods will go down and Rev is credited
Consignment fill up is not relevant for pricing, Billing relevant . ( Inventory will go down , stock posted as Customer spl.stock instead of un restricted stock.

Q.2) Consignment Issue is reduces Customer spl.stock , increases customer goods sold, and revenue account credited, account receivable is debited.
Regular order also behaves same as consignment issue , except movement type is different. In both cases Availability check and TOR are applicable.
The only different between consignment issue and regular order is regular order is not relevant for spl.stock where as consignment issue is relevant for spl.stock

Q.3) Consignment fill up is not relevant for billing and pricing where as Consignment issue is relevant for billing and pricing.
Movement type is different as consignment fill up is 631 ( Goods issue as consignment lending) and for consignment issue movement issue is 633 ( Goods issue consignment issue)
Q.4) Order #35000000 is consignment fill up order which is not relevant for billing.
Q.5) Consignment fill up delivery movement type is 631 .
Q.6) The goods movement has no relevance to accounting. So material document does not include account document
Q.7) The value of #35000000 is zero as order is not relevant for pricing.
Q.8) Item category which is not relevant for pricing.
Q.9) Sales Order # 9103 is consignment Issue.
Q.10) Picking quantity is zero in delivery # 80012651 because it is consignment issue order, goods not physically delivered.( goods moving from customer premises)
Q.11) COGS A/C # 893015 and Inventory A/c – 792000
Q.12) Consignment fill up is relevant for delivery with pickup. whereas Consignment issue is also relevant for delivery but not physical pickup
Q.13) Consignment fill-up is relevant to physical pickup and relevant for Availability check .We can find from schedule line category.
Q.14) Consignment Fill-up order # 14796 Del #80016792 PGI# 3000441
Q.15) Consignment Issue order #14797 del# 80016793 Billing# 90038756
Q.16) Consignment return # 60000173 Delivery #84000057
Q.17) Consignment pickup #60000174 , Delivery # 84000058
Q.18) Please find orders No. above
Q.19) Consignment stock 21

Q. 1 – Describe in your own words how a consignment fill-up is different from a regular order ? ( Try to think of the following aspects – Accounting, Goods Ownership , Special stock vs unrestricted stock, Customer Premises vs the company’s plant location etc )

The consignment fill up(CF) is dumping goods in vendors premises ,and it is not relevant for pricing ,and billing ,invoice .In fill up the inventory goes down and cogs (cost of goods )increases .Though the delivery takes place the goods ownership does not change until the issue stage takes place.
_________________________________________________________________

Q.2 – Describe in your own words how a consignment issue is different from a regular sales order ?

In terms of consignment issue (CI) the movement of goods is different from the regular sales order .the stock is picked up from the customer special stock in terms of the consignment issue ,whereas the sales order the regular stock in the stock file of the plant is checked .In terms of the issue the account receivable is debited and the revenue is credited.
_________________________________________________________________

Q.3 – Describe in your own words, how a consignment issue is different from a consignment fill-up ?

consignment fill up is not relevant for pricing and invoice but issue does.
The movement of goods are different for both of them.
_________________________________________________________________

Q.4 – Why does the SAP Document # 35000000 in our SAP system not have an invoice ?

The document 35000000 is not relevant for invoice because it is a consignment fill up as this could be seen as there is no relevant pricing ,and the item category is KBN which is the item category for consignment fill up.
__________________________________________________________________
Q.5 – What is the movement type associated with the corresponding delivery for the Document number specified in Q.4 ?
The movement type is 631.
__________________________________________________________________
Q.6 – Why is it that material Account Documents are not created for the PGI of the SAP delivery document # 80009740 ?

The delivery document 80009740 does not include a account document because this delivery is a consinment fill up where the movement of the goods is within the same ownership.
__________________________________________________________________
Q.7 – What is the total value of the SAP Order # 35000000 and why

The total value is 0.00usd as this is not relevant for pricing yet.
__________________________________________________________________
Q.8 – Which field controls the pricing of SAP Line Item No. 10 in the SAP Sales Order Number in Q.7 ?

This delivery is related to Consign issue as the stock is already been picked up in fill up stage and it is in their premises of the vendor. So it is not picking relevant
__________________________________________________________________
Q.11 – What are the different (COGS and Inventory Account) G/L Accounts corresponding to the Accounting document in SAP Delivery # 80012651 ?

COGS A/c – 893015

Inventory A/c – 792000
__________________________________________________________________
Q.12 – The deliveries related to only one of the following SAP sales documents need picking. Which one and why ?

Consignment Fill-up needs picking as it is done and stored in the vendor premises but issue is from the same plant.
__________________________________________________________________
Q.13 – Are physical goods in an SAP consignments Fill-up document type relevant for Availability check ? Give the procedure on how you found out the answer.
The availability check is done as the fill up needs a delivery and any delivered item in item category needs a availability check.
__________________________________________________________________

Ans1: When a consignment fill-up is created for a customer, it is not relevant for billing though the goods are delivered to the customer premises but still owned by the vendor and not owned by the customer. It is the customer special stock. Uses order type CF.
Ans2: When a consignment is issued Customer special stock qty is reduced and the uses movement type 633, otherwise it is similar to a regular order
Ans3: A CF not relevant for billing. Customer special stock is delivered to the customer premises but not billed movement typ is 631. In CI ,it is relevant for billing, Special stk qty is reduced and movement typ is 633.
Ans4: 35000000 is consignment fill-up and not relevant for billing, hence we don’t see an invoice.
Ans5: 631 for GI consignment lending
Ans 6: Account document are not created because it is a consignment fill-up.
Ans7: Total value is zero as it is a CF and not relevant for billing.
Ans8: Pricing is controlled by the item category on line item 10. Here is it is KBN for consignment fill-up.
Ans9: 9103 is a consignment issue document.
Ans10: Picking qty is zero because this is a consignment issue, where goods are already on customer premises.
Ans11: COGS A/c – ? 893015 Inventory A/c – ? 792000
Ans12: Consignment Fill-up- needs picking as in a fill-up the goods are delivered to the customer premises.
Ans13: Yes, in CF there is physical transfer of goods and so it is relevant for Availability check.
Ans14: CF for fill-up
Ans15: CI for consign issue
Ans16: CONR for consg return
Ans17: CP for consign pick-up
Ans18:
CF for 1400/m-01 created 14809 delivery 80016798 Transfer order 5213 PGI done,
CI 148010 for qty 400 created delivery 80016797.
CONR 60000181 for 100qty. return delivery 8400061 for qty 100.
CP 60000182 created. Return delivery 8400062 for qty 100 created
Ans19:
1. Unrestricted Use. (total is 18,244) before 14809 was created qty changed to 17244,CI done qty is 17244 After CP qty changed to 17344.
2. Customer Consignment. (total is 876) before 14809 was created qty changed to 1876, CI of qty 400 done qty is 1476. With CONF of 100 qty changed to 1576. After return CP 60000181 qty changed to 1476

Q. 1 – Describe in your own words how a consignment fill-up is different from a regular order ? ( Try to think of the following aspects – Accounting, Goods Ownership , Special stock vs unrestricted stock, Customer Premises vs the company’s plant location etc )

Ans: CF is a process where a certain qty of goods are dumped at the customers location but the ownership of the goods still lies with the vendor. These goods are called special stock and hence are not revelent for billing though delivery has been done, thus no invoice will be generated and no postings are made to accounts.
Billing takes place only when the goods have been consumed by the customer.

Q.2 – Describe in your own words how a consignment issue is different from a regular sales order ?

Ans: In case of Consignment Issue goods are withdrawn from Customers own warehouse and availability check is carried out for the special stock unlike in the case of a regular order where goods are withdrawn from plant & availability check is carried out for the regular stock.

Q.3 – Describe in your own words, how a consignment issue is different from a consignment fill-up ?

Ans: In CF goods are dumped at the customers premises , but there is no billing done though the delivery takes case. In CI once the customer starts consuming the special stock it becomes a “Sale” and hence billing is done for the quantity of goods consumed by the customer.

Q.4 – Why does the SAP Document # 35000000 in our SAP system not have an invoice ?

Ans: Its a Consignment fill up and hence there is no billing.

Q.5 – What is the movement type associated with the corresponding delivery for the Document number specified in Q.4 ?

Ans: 631

Q.6 – Why is it that material Account Documents are not created for the PGI of the SAP delivery document # 80009740 ?

Ans: Because it is a CF

Q.7 – What is the total value of the SAP Order # 35000000 and why ?

Ans: Zero being a CF.

Q.8 – Which field controls the pricing of SAP Line Item No. 10 in the SAP Sales Order Number in Q.7 ?

Ans: Item Category.

Q.9 – What kind of document is SAP Sales Order # 9103 ?

Ans: Consignment Issue.

Q.10 – Why is the Picking Quantity zero in SAP Delivery # 80012651 ?

Ans: The goods are already at the customers premises.

Q.11 – What are the different (COGS and Inventory Account) G/L Accounts corresponding to the Accounting document in SAP Delivery # 80012651 ?

Ans: COGS A/C –>893015
Inventory A/C –> 792000

Q.12 – The deliveries related to only one of the following SAP sales documents need picking. Which one and why ?

Ans: CF Needs picking as goods have to be delivered to the customer.

Q.13 – Are physical goods in an SAP consignments Fill-up document type relevant for Availability check ? Give the procedure on how you found out the answer.

Ans: Yes. Item category at the line item is KBN which has a schedule line category allowed for picking.

Questions : Based on today’s SAP SD Training class, please work on the following exercises.
Q. 1 – Describe in your own words how a consignment fill-up is different from a regular order ? ( Try to think of the following aspects – Accounting, Goods Ownership , Special stock vs unrestricted stock, Customer Premises vs the company’s plant location etc )
CF is a process where merchandise is dumped at the customers location as Special Stock in a lot. Delivery takes place but no billing or invoices are generated hence no effect on accounts. In a regular order, delivery, picking & invoicing takes place hence accounts are effected.
Q.2 – Describe in your own words how a consignment issue is different from a regular sales order ?
In CI, stocks are consumed from special stock at the customers premises however, in a regular order, the stock is taken from plant and availability check is performed at Plant Level.
Q.3 – Describe in your own words, how a consignment issue is different from a consignment fill-up ?
CF is a process where merchandise is dumped at the customers location as Special Stock in a lot. Delivery takes place but no billing or invoices are generated hence no effect on accounts. In CI, stocks are consumed from special stock at the customers premises and accounting documents are generated.
Q.4 – Why does the SAP Document # 35000000 in our SAP system not have an invoice ?
Since it is a congignment fill up, no accounting documents are generated.
Q.5 – What is the movement type associated with the corresponding delivery for the Document number specified in Q.4 ?
“631”
Q.6 – Why is it that material Account Documents are not created for the PGI of the SAP delivery document # 80009740 ?
Because it is a Consignment Fill-up.
Q.7 – What is the total value of the SAP Order # 35000000 and why ?
Zero, because it is a consignment Fill-up.
Q.8 – Which field controls the pricing of SAP Line Item No. 10 in the SAP Sales Order Number in Q.7 ?
Item Category KBN…In item category KBN, the pricing field is empty which means “NO PRICING”.
Q.9 – What kind of document is SAP Sales Order # 9103 ?
Consignment Issue
Q.10 – Why is the Picking Quantity zero in SAP Delivery # 80012651 ?
Because Item is Not Relevant for Picking.
Q.11 – What are the different (COGS and Inventory Account) G/L Accounts corresponding to the Accounting document in SAP Delivery # 80012651 ?
COGS A/c – ?
Inventory A/c – ?
Q.12 – The deliveries related to only one of the following SAP sales documents need picking. Which one and why ?
Consignment Fill-up…CF needs picking as the stock is picked from the warehouse to fill up in Special Stock.
Consignment Issue…No Picking needed as the stock is consumed from Special Stock.
Q.13 – Are physical goods in an SAP consignments Fill-up document type relevant for Availability check ? Give the procedure on how you found out the answer.
Yes…The schedule line associated is “E1” which requires availability Check.
Scenario : Based on the Iron Ore scenario that we discussed today in the class, please create the following. Assuming iron ore is material M-01 and PC is the units ( in tons for example ), explain which document is necessary in each of the cases.
Q. 14 . Iron Ore company wants to dump 1000 tons at the factory premises.
Q. 15 – Factory wants to consume 100 tons today.
Q. 16 – Factory wants to return 5 tons ( because of the reasons discussed in the SAP SD Training class today )
Q.17 – The Iron Ore company wants to take away 50 tons for use elsewhere.
Q.18 – Create the corresponding sales documents in sap and write them down here.
CF: 135024 SCI: 135025 ZONR (Return): 60000097 ZCP(Pickup): 60000098
Q.19. – Write down the stock situation (Here is how you can check the stock overview in SAP) in the plant where you have created the SAP sales document types in Q. 18 above ?
1. Unrestricted Use. 2880
2. Customer Consignment. 945

Q.4 – Why does the SAP Document # 35000000 in our SAP system not have an invoice ?
This is a consignment fillup (under which the goods are sent to a special stock and not billed until consumed by the customer)
Q.5 – What is the movement type associated with the corresponding delivery for the Document number specified in Q.4 ?
Movement type 631
Q.6 – Why is it that material Account Documents are not created for the PGI of the SAP delivery document # 80009740 ?
This is a consignment fillup (under which the goods are sent to a special stock and not billed until consumed by the customer)
Q.7 – What is the total value of the SAP Order # 35000000 and why ?
Total value is $0 as the goods are not consumed yet and they are actually sitting in a special stock
Q.8 – Which field controls the pricing of SAP Line Item No. 10 in the SAP Sales Order Number in Q.7 ?
Item category – in this case KBN consignment fill up
Q.9 – What kind of document is SAP Sales Order # 9103 ?
Consignment Issue
Q.10 – Why is the Picking Quantity zero in SAP Delivery # 80012651 ?
This is a CI type document so the goods are already on customer’s lot/special stock, thus making picking irrelevant
Q.11 – What are the different (COGS and Inventory Account) G/L Accounts corresponding to the Accounting document in SAP Delivery # 80012651 ?
COGS A/c – ?
Inventory A/c – ?
Q.12 – The deliveries related to only one of the following SAP sales documents need picking. Which one and why ?
Consignment Fill-up – CF needs picking as this is done from inventory and sent to customer location or special stock
Consignment Issue
Q.13 – Are physical goods in an SAP consignments Fill-up document type relevant for Availability check? Give the procedure on how you found out the answer.
Yes, in CF the goods are actually taken from inventory and delivered to special stock to the client for his use later on, so to deliver the goods, they need to be available to be picked – thus needing an availability check
Scenario : Based on the Iron Ore scenario that we discussed today in the class, please create the following. Assuming iron ore is material M-01 and PC is the units ( in tons for example ), explain which document is necessary in each of the cases.
Q. 14 . Iron Ore company wants to dump 1000 tons at the factory premises.
Create order with CF for 1000 tons #135061
Q. 15 – Factory wants to consume 100 tons today.
Create order with CI for 100 tons #135071
Q. 16 – Factory wants to return 5 tons ( because of the reasons discussed in the SAP SD Training class today )
Create OR with CONR for 5 tons #60000100
Q.17 – The Iron Ore company wants to take away 50 tons for use elsewhere.
Create order with CP for 50 tons to remove stock from special stock #60000102
Q.18 – Create the corresponding sales documents in sap and write them down here.
Q.19. – Write down the stock situation (Here is how you can check the stock overview in SAP) in the plant where you have created the SAP sales document types in Q. 18 above ?
1. Unrestricted Use. 4,508,000
2. Customer Consignment. 200,000
Q.20 – Delivery the Sales documents you have created in Q.18 above
80016313
Q.21 – Write down the stock situation ( after answering Q. 20 ab0ve )
Stock Reduced

Q. 1 – Describe in your own words how a consignment fill-up is different from a regular order ? ( Try to think of the following aspects – Accounting, Goods Ownership , Special stock vs unrestricted stock, Customer Premises vs the company’s plant location etc ).
The consignment fill up in not an actual sale.The stock in moved to the customers location,but does not change ownership until it is consumed by the customer.This kind of stock is called special stock.
There is delivery but no billing associated with Consigment fillup.The inventory does down and the special stock goes up incase of a fillup.

Q.2 – Describe in your own words how a consignment issue is different from a regular sales order ?
The customer only pays when he consumes the material.It has std delivery and billing associated with it.THe Cons.Issue doc type is KE and the std item category is KEN(Relevant for pricing and billing).

Q.3 – Describe in your own words, how a consignment issue is different from a consignment fill-up ?
It is during consignment issue that the goods change ownership to the customer.The consignment issue has deivery and billing ,but fill up does not.
For consignment fillup ,the doc type is KB but for issue it is KE.

Q.4 – Why does the SAP Document # 35000000 in our SAP system not have an invoice ?
Does not have an invoice because it is a fillup .This doc type is not relevant for billing and pricing.So,the order will have zero value.

Q.5 – What is the movement type associated with the corresponding delivery for the Document number specified in Q.4 ?
631 – consignment lending

Q.6 – Why is it that material Account Documents are not created for the PGI of the SAP delivery document # 80009740 ?
Because it is still in consign.fillup and not consumed .The stock has only changed locations.

Q.7 – What is the total value of the SAP Order # 35000000 and why ?
THis is a fillup and the item category KBN is not relevant for pricing.

Q.8 – Which field controls the pricing of SAP Line Item No. 10 in the SAP Sales Order Number in Q.7 ?
Pricing field left blank in the item category template KBN.

Q.10 – Why is the Picking Quantity zero in SAP Delivery # 80012651 ? 631- Since this is a cons issue , stock is already in customer premises and the movement type associated with it is 631- Cons lending.
Q.12 – The deliveries related to only one of the following SAP sales documents need picking. Which one and why ?
Consignment Fill up needs picking as goods as trasnferred to the customer’s location.

Q.13 – Are physical goods in an SAP consignments Fill-up document type relevant for Availability check ? Give the procedure on how you found out the answer
The schedule line categories used for fillup are E1 and E0.
E1 – Availablity check On
E0 – No availability check

Scenario : Based on the Iron Ore scenario that we discussed today in the class, please create the following. Assuming iron ore is material M-01 and PC is the units ( in tons for example ), explain which document is necessary in each of the cases.

Questions : Based on today’s SAP SD Training class, please work on the following exercises.

Q. 1 – Describe in your own words how a consignment fill-up is different from a regular order ? ( Try to think of the following aspects – Accounting, Goods Ownership , Special stock vs unrestricted stock, Customer Premises vs the company’s plant location etc )

Solution:

Accounting: There is no Billing/Accounting related to the Consignment fillup where as standard order is relevant for billing hence accounting

Goods Ownership: There will be change in Goods owner ship for goods in Consignment Fillup, where as change in Goods ownership happens dwn the road with sales order

Special stock vs Unrestricted Stock: Special Stock Goes up with CF but not with OR
Customer Premises vs Company Plant Location: For Consignment Issue with reference to Consignment Fillup, Goods are delivered to end customer from Dealer premises. Where as for the Delivery with reference to sales order Goods are delivered from Plant Location.

Q.2 – Describe in your own words how a consignment issue is different from a regular sales order ?

Solution: Consignment Issue takes place If Special Stock filled at Customer Premises are used. Where as Sales Order takes place when A sale of regular stock with in the company warehouse happens.

Q.3 – Describe in your own words, how a consignment issue is different from a consignment fill-up ?

Solution:

• Consignment fillup is not relevant for Billing/Accounting, where as consignment issue does
• Consignment fillup is relevant for delivery document where as consignment issue does not
• Consignment fillup Brings up the Special stock where as Consignment Issue Brings it down
• Items Category with in the Consignment fillup are not relevant for pricing, where as Consignment Issue does

Q.4 – Why does the SAP Document # 35000000 in our SAP system not have an invoice ?

Solution: Because #35000000 is a CF document and is not relevant for billing until Goods are used

Q.5 – What is the movement type associated with the corresponding delivery for the Document number specified in Q.4 ?

Solution: 631: GI consgmt: lending

Q.6 – Why is it that material Account Documents are not created for the PGI of the SAP delivery document # 80009740 ?

Solution: Account Documents are not created because it is Cf and not relevant fir Billing, Thus Accounting.

Q.7 – What is the total value of the SAP Order # 35000000 and why ?

Solution: 0, Because Pricing for these Items are controlled by Item category, which is KBN in this case and not relevant for Pricing and Billing.

Q.8 – Which field controls the pricing of SAP Line Item No. 10 in the SAP Sales Order Number in Q.7 ?

Solution: Item Level Category

Q.9 – What kind of document is SAP Sales Order # 9103 ?

Solution: Consignment Issue

Q.10 – Why is the Picking Quantity zero in SAP Delivery # 80012651 ?

Solution: Because Goods here no need to be picked and delivered as they are already delivered during consignment fillup

Q.11 – What are the different (COGS and Inventory Account) G/L Accounts corresponding to the Accounting document in SAP Delivery # 80012651 ?

COGS A/c – 893015
Inventory A/c – 792000

Q.12 – The deliveries related to only one of the following SAP sales documents need picking. Which one and why ?
Consignment Fill-up
Consignment Issue

Solution: Only Consignment Fill up needs picking, since goods here are being moved from companies warehouse

Q.13 – Are physical goods in an SAP consignments Fill-up document type relevant for Availability check ? Give the procedure on how you found out the answer.

Solution: Yes, relevant for Avaliability check, Based on the Schedule Line Cateogory

Scenario : Based on the Iron Ore scenario that we discussed today in the class, please create the following. Assuming iron ore is material M-01 and PC is the units ( in tons for example ), explain which document is necessary in each of the cases.

Q. 1 – Describe in your own words how a consignment fill-up is different from a regular order ? ( Try to think of the following aspects – Accounting, Goods Ownership , Special stock vs unrestricted stock, Customer Premises vs the company’s plant location etc )
Consignment is the process of maintaining goods at the customer warehouse by the company for the convenience of the customer usage of goods and still the goods are owned by company until the goods are consumed by the customer from the warehouse.
Process of sales happens in four steps, consignment fill-up, consignment pick-up, consignment issue and consignment returns.
Consignment fill-up is placing the goods at the warehouse convenient to the customer usage (warehouse could be either customer’s/company’s). It is different to regular order in the following ways when CF order is created,
Ownership of the goods is still with Company and not customer.
Special stock (consignment stock) goes up and unrestricted stock goes down.
There will not be any invoice creation and no documents are posted to cost of goods a/c

Q.2 – Describe in your own words how a consignment issue is different from a regular sales order ?
Delivery happens from the customer warehouse
Special stock (consignment stock) goes down
Q.3 – Describe in your own words, how a consignment issue is different from a consignment fill-up ?
No invoice or cost of goods involved in the case of CF, whereas in the case of CI cost of goods involved, and invoice will be created.
Consignment stock goes up in CF, whereas it goes down in CI.
Q.4 – Why does the SAP Document # 35000000 in our SAP system not have an invoice ?
35000000 is Consignment fill-up order, where cost of goods is not involved. Has item cat – KBN, which is just a cons fill-up and not relevant for billing/pricing.
Q.5 – What is the movement type associated with the corresponding delivery for the Document number specified in Q.4 ?
WMS transfer order and Goods issue – consignment lending.
Q.6 – Why is it that material Account Documents are not created for the PGI of the SAP delivery document # 80009740 ? It is just a fill-up (transfer of goods from plant to customer warehouse) and goods are still owned by the company and not consumed by customer. Only the consignment stock goes up and corresponding unrestricted stock goes down.
Q.7 – What is the total value of the SAP Order # 35000000 and why ?
Zero. Not relevant for pricing/billing. Has item category KBN.
Q.8 – Which field controls the pricing of SAP Line Item No. 10 in the SAP Sales Order Number in Q.7 ?
Item category – KBN
Q.9 – What kind of document is SAP Sales Order # 9103 ?
It is Consignment issue (CI)
Q.10 – Why is the Picking Quantity zero in SAP Delivery # 80012651 ?
Delivery is created w.r.t consignment issue, Picking the goods from the plant is not relevant for this delivery since the goods are already transferred to customer warehouse in CF movement type of cons. Lending.
Q.11 – What are the different (COGS and Inventory Account) G/L Accounts corresponding to the Accounting document in SAP Delivery # 80012651 ?
COGS A/c – ?
Inventory A/c – ?
Q.12 – The deliveries related to only one of the following SAP sales documents need picking. Which one and why ?
Consignment Fill-up – needs picking, this involves transfer of goods from company premises plant to customer warehouse.
Consignment Issue – not relevant for picking.
Q.13 – Are physical goods in an SAP consignments Fill-up document type relevant for Availability check ? Give the procedure on how you found out the answer.
Yes, schedule line category
Scenario : Based on the Iron Ore scenario that we discussed today in the class, please create the following. Assuming iron ore is material M-01 and PC is the units ( in tons for example ), explain which document is necessary in each of the cases.
Q. 14 . Iron Ore company wants to dump 1000 tons at the factory premises. – CF
Q. 15 – Factory wants to consume 100 tons today. – CI
Q. 16 – Factory wants to return 5 tons ( because of the reasons discussed in the SAP SD Training class today ) – CONR
Q.17 – The Iron Ore company wants to take away 50 tons for use elsewhere. – CP
Q.18 – Create the corresponding sales documents in sap and write them down here. –
25264 – CF, 25265 – CI, CONR – 60000138, CP – 60000139

COGS stands for Cost of Goods Sold. As discussed in the class for regular sales, the effected material accounts during a PGI are
1. COGS is Credited
2. INV is Debited
Let’s discuss this in the class if required.

I created Consignment Fill-up 13474 and delivered goods. Delivery # 80016268
some reason i try to create consignment issue 13475 but i couldn’t see any stock available and also I went to MMBE to check special stock for M-03 but i couldn’t see anything like that.

Can you please check it out what is wrong in consignment issue and fill-up.

Questions : Based on today’s SAP SD Training class, please work on the following exercises.
Q. 1 – Describe in your own words how a consignment fill-up is different from a regular order ? (Try to think of the following aspects – Accounting, Goods Ownership , Special stock vs unrestricted stock, Customer Premises vs the company’s plant location etc )
Answer: Consignment fill-up means when company and customer has some consignment agreement than send some goods to customer premises to store but ownership of the goods still remain under company’s name and that stock called special stock
Regular sales means once company send goods to customer premises and customer’s own goods and depending on the terms, they will pay to company.
Q.2 – Describe in your own words how a consignment issue is different from a regular sales order?
Answer: Consignment issue means when customer consume the stock which is store by company to their storage, The ownership change to customer’s name after consignment issue and customer will pay to company depends on their terms.
Q.3 – Describe in your own words, how a consignment issue is different from a consignment fill-up?
Answer: In Consignment fill up – sales documents type used “CF”, delivery happens and an unrestricted stock goes down and a special stock goes up, there are no pricing and billing relevant. Item category used for this transaction is “KBN”
In Consignment Issue – A special stocks goes down and COGS (stands for Cost of Goods Sold) goes up, there are pricing and billing relevant. Item category used for this transaction is” KEN” and sales documents type used “CI”.
Q.4 – Why does the SAP Document # 35000000 in our SAP system not have an invoice?
Answer: Document # 35000000 is consignment fill up so it’s only stock transfer from company to customer location but ownership still remains under company’s name.
Q.5 – What is the movement type associated with the corresponding delivery for the Document number specified in Q.4?
Answer: Movement type 631 associated with schedule line category “E1”. (You can check on scheduling line- go to procurement tab – movement type)
Q.6 – Why is it that material Account Documents are not created for the PGI of the SAP delivery document # 80009740?
Answer: Delivery document # 80009740 is consignment fill up delivery so goods ownership(means goods movement) still under company’s name.
Q.7 – What is the total value of the SAP Order # 35000000 and why?
Answer: Total value of the order # 35000000 is “0.00” because this is consignment fill up order so no pricing and billing relevent.
Q.8 – Which field controls the pricing of SAP Line Item No. 10 in the SAP Sales Order Number in Q.7?
Answer: The item category “KBN” is set as not relevant for billing as well as for no pricing.
Q.9 – What kind of document is SAP Sales Order # 9103?
Answer: Sales order # 9103 is consignment Issue.
Q.10 – Why is the Picking Quantity zero in SAP Delivery # 80012651?
Answer: This delivery is related to Consignment issue as the stock is already been picked up in consignment fill up stage and it is in their premises of the customer so it is not picking relevant
Q.11 – What are the different (COGS and Inventory Account) G/L Accounts corresponding to the Accounting document in SAP Delivery # 80012651 ?
COGS A/c – ?
Inventory A/c – ?
Answer: COGS (cost of goods sold) A/C –792000 ($3884.24) credited and inventory A/C (finish good inventory) -892015(-$3884.24) – debited
Q.12 – The deliveries related to only one of the following SAP sales documents need picking. Which one and why?
Consignment Fill-up
Consignment Issue
Answer: Consignment Fill up need picking for delivery because goods physically move to customer’s location from unrestricted stock but Consignment Issue which happen at customer location so no need to picking for delivery. It’s just changing ownership of goods from company to customer’s name.
Q.13 – Are physical goods in an SAP consignments Fill-up document type relevant for Availability check? Give the procedure on how you found out the answer.
Answer: Yes, when a consignment fill-up is carried out, the system checks the available quantity of stock in the delivering plant to see if this quantity can be met. To find out go to schedule line category “E” which uses availability checking.
Scenario : Based on the Iron Ore scenario that we discussed today in the class, please create the following. Assuming iron ore is material M-01 and PC is the units ( in tons for example ), explain which document is necessary in each of the cases.
Q. 14 . Iron Ore company wants to dump 100 tons at the factory premises.
Answer: Created Consignment Fill-up (“CI” order type) – 13497 and delivered goods. Delivery # 80016276 – [quantity used 100]
Q. 15 – Factory wants to consume 50 tons today.
Answer: Created consignment issue (“CI” order type) – 13498, Delivery # 80016277 and billing document #90038103
Q. 16 – Factory wants to return 10 tons (because of the reasons discussed in the SAP SD Training class today )
Answer: Created Consignment return (“CONR” order type) – 60000091 and delivery # 84000031
Q.17 – The Iron Ore Company wants to take away 50 tons for use elsewhere.
Answer: Created consignment pick-up(order type – “CP”) – 60000092 and delivery # 84000032
Q.18 – Create the corresponding sales documents in sap and write them down here.
Answer: 1) Created consignment Fill-up- 13497 and delivered goods. Delivery # 80016276
2) Created consignment issue (“CI” order type) – 13498, Delivery # 80016277 and billing document # 90038103.
3) Created Consignment return (“CONR” order type) – 60000091, delivery # 84000031
4) Created consignment pick-up (order type – “CP”) – 60000092, delivery # 84000032
Q.19. – Write down the stock situation (Here is how you can check the stock overview in SAP) in the plant where you have created the SAP sales document types in Q. 18 above ?
1. Unrestricted Use.
Answer: Go to MMBE – unrestricted use – 6200
2. Customer Consignment. – 100 ( after consignment fill-up 100)
Q.20 – Delivery the Sales documents you have created in Q.18 above
Answer: Delivery #84000031
Q.21 – Write down the stock situation (after answering Q. 20 above)
Answer: Customer Consignment stock – 10 (After consignment issue 50, consignment Return 10 and consignment pick-up 50)
Thanks,
Mital

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